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Hi everyone, I recently completed my MSc in International Banking and Finance, and I am passionate about pursuing a career in investment banking here in the UK. I have also completed the Bloomberg Market Concepts and Bloomberg Finance Fundamentals courses to strengthen my understanding of financial...

Hello! Thanks for anyone reading this. I was hoping to get some help on what to do with GDP in a project finance model exercise. If the GDP growth is 2%, should I just apply this to historical traffic data? Its noted that the historic traffic to GDP correlation coefficient is 0.8, am I just simply...

A bit dissatisfied with the current solutions out there, so I'm working on this tool that automatically grabs the line items from your current spreadsheet and fills it with data from 10-Ks, 8-Ks, and earnings call transcripts. Here's an example of before: And this is what it looks like when the...

I am from an IFRS-based country and is doing a project to showcase my financial modelling skills. I have encountered a problem where I have no idea how to link change on B/S items to the change in WC in the CF/S (accounts payables is mixed with other payables and accrued expenses on the B/S but...

Hi all. Interviewing for a senior analyst (2nd year) IB role in Healthcare at BB US bank in the UK, and I was curious if anyone could advise on the usual interview process, modelling tests, and general Healthcare specific questions or resources that I should look into. To mention that this is an...

How much are REPE Analysts/Associates actually building a model from scratch? I work at a brokerage shop, where we have a template we always use and modify. Job descriptions for the principal side always mention "create" or "from scratch". I figured they would have standard model they can plug into,...

Unfortunately, I did not pass a modeling test for an M&A analyst position, and the interviewer never bothered to provide feedback. I am stuck with the debt schedule, cash flow available for debt repayment, interest income, and expenses. Can someone please help me populate the sheet? No matter what I...

How do you model public firms given they provide so little information about their operations? They publish almost no information about units sold, product price, headcount, etc. Apple doesn’t even publish the number of iPhones sold. How is one supposed to make a financial model for a public...

I have encountered a problem recently. I’m trying to value public firms trough financial models. But they publish almost no information about units sold, product price, headcount, etc. Apple doesn’t even publish the number of iPhones sold. How is one supposed to make a financial model for a...

I'm exploring resources that use AI to refine my firm's current development model and build out a new model that can support multiple development deals. What resources do you all suggest could help me? Our current model is dynamic and has all the capabilities to properly underwrite a development...

Hello! I’m a first year investment banking analyst. I would like your thoughts on the following adjustment to operating leases, which in my opinion reflect better the economic reality of leases. First, I would argue that an operating lease is equivalent to buy an asset with debt (that is,...

Hello! I’m an investment banking analyst in a small firm. I’ve always thought that I had a pretty good understanding of accounting, but I have realized that I have a major blank space regarding operating leases under GAAP. Ok, so I understand that the present value of the future payments on the...

Hi team, I need a financial plan template for a B2B SaaS company. I'm founding my startup and an annoying VC wants a financial plan before putting in the money (post 2021 things). At a previous startup I worked at, the founder was an ex-Goldman guy, and he had the most awesome financial plan,...

I am trying to model a simulated version of an IT company that offers software development to b2b; however once I tried to model our business I landed on -1, but I know my variable costs are higher. the variable costs are yearly calculated to avoid bankruptcy, but we bankrupt the company. our...

Currently in college and mess around with my own models. What are the best practices for updating a previous model with the actual numbers? How should this look/act in Excel? Also, what are the best ways (if it's worth it) to compare my expected numbers to the actual numbers? Are there other ways I...

At my firm and for our universe we do not do full 3 statement models for our companies. They are majority large cap financial companies and we normally just model out each individual business segment and reach our EPS. We can then use PE / FCF Mult. / PB / Comps and apply those to the 'cash flows'...

Hi all, just finished an interview round and was stumped by the following. For this round, the general skeleton of the financial model was provided and we just had to fill up and link everything. Let's assume a forecast period of 2023E - 2028E. The different schedules and 3FS were fine till I got to...

Hi all, I wanted to build a model of a public company (US listed co) from scratch and almost balanced, but still cannot figure out whats the problem. I checked line by line and adding/subtracting all over again. Would really appreciate some help as I'm off by a constant in each projected year. Can...

Dear community, I would appreciate your advice on the following. I am analyzing an LBO of a private company and am getting a bit confused regarding management reinvestment / rollover. Assumptions: 1M EBITDA, 10x multiple, no debt on B/S, 2M cash on B/S pre-transaction Hence, 10M EV and 12M Equity...

So, my question revolves around drawing down an interest reserve dynamically. Let's say we have in one cell an interest reserve of $XM. I also have a negative cash flowing asset that needs to draw upon the interest reserve when there are negative shortfalls due to debt service. At some point, the...

When calculating equity value, do you subtract tax receivable agreement liabilities? If so, do you use the stated amount on the balance sheet or do you perform your own calculation?

Hi there, I am trying to add the skill of financial modeling to my repertoire and was wondering if anyone would be interested in looking over my model and giving me pointers/advice on how to continue learning and developing this skill. For context, I am doing a 3 statement model and just trying to...

Hi all, Got myself in a bit of a bind since moving from M&A to industry and I cannot decide if I should be modelling the group companies 10 year forecast same as M&A with assumptions for growth and margins and so on or should I do it a similar way as a budget showcasing all underlying items each...

Hi there, I cannot get monthly interest amounts to reconcile to annual interest amount. Suppose we assume that interest for a given period = rate% x opening balance. There are two problems with reconciling the monthlies vs annual calcs: 1.In a given year, you might have a lot of drawdowns in the...

Hi Monkeys, have two doubts per the below on how you would model these ( independent from one another ): - "There is existing debt of €100m, rolled over at acquisition (Dec-22). The new debt: First refinancing in Dec-25. Refinance every 4 years thereafter. Target net leverage 8.0x EBITDA". In sum,...

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Hi everyone, I'm currently working as an intern in a SGR in the risk management division, but I would love to join in a PE fund, in the investment team. I joined this forum to deepen my knowledge of selection processes in PE funds and to better prepare myself for interviews.

Hi there, I have come across an LBO case study where there is approx. $1,000M of assets held for sale on the balance sheet and approx. ~$300M of liabilities associated with those assets held for sale. When calculating TEV at Entry, which would be a better approach and why: 1) Keeping the assets held...

Incoming freshman here who is dead-set on making IB after college. I plan on getting an internship after my freshman year and I'm aware that modeling skills are absolutely necessary for these. Over the summer I have lots of free time to research finance so which models should I focus on learning? I...

I am working in a modeling template for practice (simple three statement w/ a few schedules). I have everything filled out but my debt schedule is looking a bit off if I enable accelerated payment on both switches. I think it has something to do with how I linked a few items on the debt schedule but...

I am looking to purchase a course to add modeling to my skillset - I'm a 1yr Associate at a PE Fund doing a lot of origination but want to break into the deal/investment side. I don't have classic IB training but am pretty comfortable in Excel from prior jobs and this one. Ideally looking for...

Let me know if anyone can help. It needs to be completed by Sunday.

Hey everyone, looking for a steer on what to possibly expect in a 1 hour case study (in-person) for a mid market investment bank. Told the case study covers both analysts and associates, so thats the level. Previous round interviewer mentioned high level tips, case study based on op model and...

building a pretty simple model for a discretionary name, but 3 statement model is slightly unbalanced. I've double checked all BS items linking to CF, D&A schedule, and signs, yet still can't find anything wrong. BS check is off by ~73 & doubling in yr2. I know I am missing something & I'm hitting...

I'm currently a Senior Associate in FDD/TAS at an accounting firm. Once I get to 1.5 years in FDD, which will be this summer/early fall, I'm going to try to move into the typical sought after exit ops like IB, Corp Dev, or MM PE. Given I'm in FDD, I know one of the things I am missing form my skill...

At its simplest, this ought to be: balance brought forward +drawdown -repayment +interest = ending bal The concept of repayment is that you never model more repayment more than the amount of loan that is accrued in that period. So if you have capability to repay $1m, but the loan /drawdown during...

Hi all - I am starting in IB Full-Time this July. I graduated early so I have some time and am in search of a tutor to help me learn financial modeling. I didn't take a ton of finance classes at school as they weren't required but I do have a decent accounting background. The internship this summer...

I'm curious how HFs (talking fundamental L/S HFs) do models and projections. Coming from banking, unless we have the management model, we're almost always just taking consensus and extrapolating. It's never that useful other than to put numbers around "value creation" or expected valuation in a...

Hi good people of WSO. I bombed my case study for a PE junior analyst position, but still wanted to review what I was struggling with - would appreciate if you could offer some guidance/advice on the below two questions I couldn't answer.For your background, I was given three financial statements...

Hi all, if you were preparing a financial model to do the following to project growth for your company, how far out would you take it for investors - 3 years, 5 years? The model will do the following: 1. Calculate Cash Burn / Runway / MoM Growth 2. Project outcomes for future investors Am kind of a...

I'm modeling a three statement for a retail business. I've never made a full three statement and I feel like it is pretty much complete but it is not balancing. Would anyone be able to help me out? I can pm the excel link. Thanks in advance.

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I have lateral tests from top shops. Got them from interviewing with the firms during COVID. PM me if you would like to get your hands on them. Cheers

Dipping my toes in the water in undergrad with creating Excel models. Feel confident using sales X volume, Top-down, bottom up revenue assumptions for expected revenues, but struggling to adjust COGS, SG&A, R&D, and interest expense to scale with revenues. Anyone have some helpful tips / best...

Hi all, I have an assignment due and it is so confusing to me. Please can someone help, is there any templates i could refer to? Thanks!

Hi, I am building a financial model for a case study. I have access to Factset and Facset is including the Deprecation/Amortization in COGS. I do not have experience working with D&A in cogs so I am unsure of how to proceed. For the proforma should D&A be included in cogs or can I account for it in...

Hi everyone, this is my first post here, nice to meet you all! I am working in a 3-statement model and created a simple tax schedule, which takes book EBT and adds back book depreciation, to calculate government taxes using tax losses and accelerated depreciation. Similar to the operating model...

Hello everybody, I have to change my laptop and was intent on buying a Mac Air 13 M1, for reasons I am not here to list. However, one thing I wouldn't want to give up is the flexibility and operability of Excel. I have recently joined an M&A boutique where I certainly have a computer running on...

Interviewing for a lateral position next week and don't have a ton of experience with LBOs. I know what they are, why they're used, who good candidates of an LBO are, and can do a paper LBO, but I don't have much modeling experience. Is it possible to get proficient at it in a day? If so, do you...

In college, the professors teach you how to create financial models using excel and give you textbooks to read. When you start at the very bottom (entry level) of the bulge bracket investment banks, will your superiors like the Associate/VP/MDs give you an assignment involving creating a financial...